Class 9 Social Science Notes Chapter 2 (People as resource) – Economics Book
Alright class, let's delve into Chapter 2 of our Economics textbook, 'People as Resource'. This chapter is fundamental because it shifts our perspective on population – viewing it not just as numbers, but as a potential asset for the nation's economy. For your government exam preparation, understanding these concepts thoroughly is crucial.
Chapter 2: People as Resource - Detailed Notes
1. Introduction: The Concept
- People as Resource: This refers to the country's working population in terms of their existing productive skills and abilities. It emphasizes that population, when equipped with education, training, and healthcare, becomes Human Capital.
- Human Capital: This is the stock of skill, ability, expertise, education, and knowledge embodied in the people of a country. It's considered superior to other resources like land and physical capital because human resources can utilize and add value to other resources.
- Shift in Perspective: Instead of viewing a large population solely as a liability (requiring food, education, healthcare), this concept views it as a potential asset – a source of productive power.
- Human Capital Formation: This is the process of adding to the stock of human capital over time. It happens when investments are made in:
- Education
- Health
- Training (On-the-job training)
- Migration (seeking better opportunities)
- Information (regarding jobs and opportunities)
2. Investment in Human Capital
- Just like investments in physical capital (machinery, buildings), investments in people yield returns in the future.
- Education:
- Enhances labour productivity.
- Leads to higher earnings for individuals.
- Contributes to the growth of society.
- Facilitates the use of modern technology.
- Opens new horizons and provides new aspirations.
- Develops values in life.
- Health:
- A healthy person can work more efficiently and productively.
- Reduces absenteeism from work.
- Increases longevity and quality of life.
- An unhealthy person becomes a liability for an organisation and the nation.
- Training: Equips individuals with specific skills required for particular jobs, increasing efficiency and productivity.
- Virtuous Cycle: Educated and healthy parents understand the importance of investing in their children's education and health, creating a positive cycle where human capital formation continues across generations. (Example: Story of Sakal)
- Vicious Cycle: Conversely, disadvantaged parents, often uneducated and unhealthy themselves, may lack the resources or awareness to invest in their children, perpetuating a cycle of disadvantage. (Example: Story of Vilas)
3. Economic Activities by Men and Women
- Economic Activities: Activities that add value to the national income. They result in the production of goods and services.
- Classification of Economic Activities:
- Primary Sector: Activities related to natural resources. Examples: Agriculture, forestry, animal husbandry, fishing, poultry farming, mining, quarrying.
- Secondary Sector: Activities involving manufacturing and construction. Raw materials are transformed into finished goods. Examples: Manufacturing industries, building construction.
- Tertiary Sector: Activities that provide services. Examples: Trade, transport, communication, banking, education, health, tourism, insurance.
- Market Activities: Performed for pay or profit. Include production of goods or services, including government services.
- Non-Market Activities: Production for self-consumption. Examples: A farmer consuming their own produce, household chores done by family members (cooking, cleaning, childcare).
- Division of Labour between Men and Women:
- Historically, there's a division based on gender. Women often manage domestic chores (non-market activities), while men typically work in fields or outside jobs (market activities).
- Work done by women in the household is often not recognized in the national income.
- When women enter the paid workforce (market activities), their earnings depend on their education and skill, similar to men.
- However, women often face disadvantages: lower pay for similar work, job insecurity, lack of basic facilities (maternity leave, childcare), especially in the unorganized sector.
4. Quality of Population
- The quality of the population is a key determinant of a country's growth rate. It depends mainly on:
- Literacy Rate: The ability to read and write. Education enhances national income, cultural richness, and governmental efficiency.
- Health: Indicated by life expectancy, infant mortality rate (IMR), nutritional levels, and disease resistance. Healthy individuals are more productive.
- Skill Formation: Acquired through education and training.
- Role of Education:
- Government Initiatives:
- Sarva Shiksha Abhiyan (SSA): A significant step towards providing elementary education to all children in the 6-14 years age group (launched 2001). Focuses on bridging social and gender gaps.
- Mid-day Meal Scheme: Implemented to encourage attendance, retention, and improve nutritional status of school children.
- Establishment of Navodaya Vidyalayas in each district to nurture talent.
- Expansion of vocational streams.
- Increased outlay on education over the years (as a % of GDP).
- Impact: Increased literacy rates over the decades, though disparities remain (male vs female, urban vs rural).
- Government Initiatives:
- Role of Health:
- Government Initiatives:
- Focus on improving accessibility of healthcare, family welfare, and nutritional services, especially for underprivileged segments.
- Building extensive health infrastructure (hospitals, primary health centres, dispensaries).
- Focus on increasing the number of medical professionals.
- Indicators & Impact:
- Life Expectancy: Increased significantly over the years, indicating better health conditions.
- Infant Mortality Rate (IMR): Declined considerably, reflecting better maternal and child healthcare, nutrition, and sanitation. (IMR is the death of a child under one year of age per 1000 live births).
- Challenges remain: Access to basic facilities like safe drinking water and sanitation, regional disparities in medical infrastructure.
- Government Initiatives:
5. Unemployment
- Definition: Unemployment exists when people who are willing and able to work at the prevailing wage rates cannot find jobs. (Note: Children below working age and elderly people are not counted).
- Workforce Population: Includes people from 15 years to 59 years.
- Types of Unemployment in India:
- Seasonal Unemployment: Occurs when people find work only during certain seasons of the year. Common in agriculture (sowing, harvesting times) and industries like sugar mills or tourism.
- Disguised Unemployment: Occurs when more people are employed in a job than are actually required. Even if some are withdrawn, production does not fall. Very common in agriculture where entire families work on small plots. The work requires fewer people, but everyone is engaged. Their contribution to production is minimal or zero (marginal productivity is close to zero).
- Educated Unemployment: A common phenomenon in urban areas where educated youth (matriculates, graduates, post-graduates) are unable to find jobs suited to their qualifications or any job at all.
- Consequences of Unemployment:
- Wastage of manpower resource.
- Turns the population asset into a liability.
- Creates feelings of hopelessness and despair among youth.
- Increases economic overload (dependence on the working population).
- Can lead to social unrest and tension.
- Adversely affects the overall growth of the economy.
Conclusion:
The chapter concludes that 'People as Resource' is a way of looking at the population as a crucial asset. Investing in health, education, and training (Human Capital Formation) is essential for transforming the population into a productive force, driving economic growth and improving the overall quality of life in the country. Addressing issues like unemployment and ensuring quality education and healthcare for all are vital steps in this process.
Multiple Choice Questions (MCQs)
-
The concept 'People as Resource' emphasizes viewing the population as:
a) A liability for the nation
b) An asset for the economy
c) Consumers only
d) A burden on resources -
Investment in human capital formation includes expenditure on:
a) Education and Health
b) Machinery and Buildings
c) Raw Materials
d) Land acquisition -
Which of the following is an activity of the Primary Sector?
a) Banking
b) Manufacturing clothes
c) Teaching
d) Fishing -
Activities performed for pay or profit are known as:
a) Non-market activities
b) Self-consumption activities
c) Market activities
d) Domestic chores -
Sarva Shiksha Abhiyan (SSA) aims to provide elementary education to children in which age group?
a) 0-5 years
b) 6-14 years
c) 15-18 years
d) 18-25 years -
Infant Mortality Rate (IMR) refers to the death of a child under:
a) Five years of age per 1000 live births
b) One year of age per 1000 live births
c) Two years of age per 100 live births
d) One year of age per 100 live births -
When more people are employed in an activity than required, it is called:
a) Seasonal Unemployment
b) Educated Unemployment
c) Disguised Unemployment
d) Open Unemployment -
Educated unemployment is a major problem primarily in:
a) Rural areas
b) Urban areas
c) Both rural and urban areas equally
d) Mountainous regions -
Investment in human capital yields returns in the form of:
a) Higher productivity and earnings
b) Decreased efficiency
c) Increased population growth
d) Environmental degradation -
Which of the following is NOT a direct indicator of the quality of a population?
a) Literacy Rate
b) Life Expectancy
c) Number of shopping malls
d) Health status (e.g., low IMR)
Answer Key:
- b
- a
- d
- c
- b
- b
- c
- b
- a
- c
Study these notes carefully, focus on the definitions, classifications, and government initiatives mentioned. Understanding the core idea – that people are a valuable resource when invested in – is key. Good luck with your preparation!